From Property Hell to HMO Heaven – How to Transform Your Property for Bumper Returns
When renting out an HMO (house of multiple occupation) is it really necessary to go the extra mile to make it look good?
For many many years, the answer was no. Student demand for HMOs exceeded supply and even poor quality houses were filled year after year.
Now though, things have changed. The development of a wave of purpose-built all en suite city centre student accommodation has left many tired HMOs looking distinctly unattractive. Why would a student now choose to live in a property which looks dank, dismal, dirty and downright depressing, when a brighter alternative is available for around the same price, and sometimes less?
These changes are particularly felt in parts of the UK which have also experienced a massive drop in student numbers. In Newport (South Wales) for example, many courses were moved from Newport campus to Cardiff.
Many forecast the end of HMOs in Newport. But we think it’s just the beginning. Here, I’m going to explain how a few simple, and relatively inexpensive changes can transform your property and your rental income.
So let’s play spot the difference. What’s the difference between the picture on the left and the one on the right below? It’s additional rental income each room. Fewer voids. Fewer non-paying tenants. Better yields. Better investment. Happier you. And happy tenants.
For this particular 5-bed property, the rent had been reduced by £500pcm in a bid to let it when student demand evaporated. Since it’s makeover it now achieves rents over £1,000 pcm higher than it’s previous high point.
Can you afford not to?
Typically costs vary but we find that for most HMOs the cost of a refurb can be recouped in additional rent within the first year, leaving you with a stronger investment and a more valuable asset moving forward.
And it’s not just us landlords and investors who benefit. Tenants love our properties too. We go the extra mile to deliver a gorgeous home and exceptional service at an affordable price. Typical rents we charge in South Wales are around £400 for a beautiful home, with all bills and broadband included and a dedicated customer service Property Angel.
This is what we do and it’s easy for you to do it too and achieve amazing results.
Need Advice? We Can Help
If you’re dissatisfied with your HMOs performance or want to learn more about how you can make improvements or how we would work for you – give us a call.
Our advice is free with no obligation; our experience invaluable and more than anything we want to see you make a success of your HMO investment.
Call now on 01633 449 200 to find out how we can make your life easier and help you start making more money and stop losing time and sanity!
Can’t talk now? Book a call with a Property Angel